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2015 (5) TMI 262 - HC - Income TaxReopening of assessment - high level of operating profits and the consequent alleged excessive deduction taken by the petitioner-assessee under section 10A - Held that:- As decided in assessee's own case [2014 (9) TMI 128 - ITAT DELHI] as facts of that case were somewhat similar to the present case the very basis for forming the purported reason to believe that the income had escaped assessment in respect of the assessment year in question does not survive any further. It can be seen from the facts of the instant case that the Assessing Officer has simply treated high profit earned by the assessee as a rea son to summon sub-section (10), without even remotely demonstrating the existence of any 'arrangement' between the assessee and its AEs aimed at producing extraordinary profits in the hands of the assessee. The conclusion drawn by the authorities below in such circumstances cannot be ex consequent sustained. Since the Tribunal, in that case had already deleted the additions in respect of the assessment years 1998-99 and 2001- 02, the very basis for continuing any further with the reassessment proceedings in respect of the relevant assessment year (1999-2000) did not survive any further. It was specifically noted in the said decision in Silver Oak Laboratories (2008 (12) TMI 40 - HIGH COURT DELHI ) that there was no specific allegation with regard to the assessment year 1999-2000 regarding the suppression of the sale figures and that the reassessment proceedings depended entirely on the additions made in respect of the assessment years 1998-99 and 2001-02, which, as pointed out above, had been deleted by the Tribunal. It was also noted in the said decision that the Revenue had not filed any appeal against the decision of the Tribunal deleting the said additions. Thus we direct that the reassessment proceedings stand closed and the present writ petition is disposed of with liberty to both sides to seek revival in case the need arises - Decided in favour of assessee.
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